Swedish crown hits 6 1/2-year low against euro

London

SWEDEN'S crown hit a 6 1/2-year low against the euro on Thursday, after the central bank said the chances of another interest rate cut had increased and it was ready to expand its quantitative easing programme further.

The Riksbank has already slashed rates to -0.5 per cent and is on track to buy 40 per cent of the stock of outstanding government bonds by year-end. But inflation remains subdued and the central bank said it would take longer to hit its target than previously expected.